Oakland County property values finally flatten out WITH VIDEO

A new look at property tax assessments indicates years of declining values in Oakland County may be bottoming out.

With summer property tax bills going out at the end of June and in early July, property values across the county are up an average of 1.16 percent.

Average taxable values -- which determines in how much revenue local governments receive and how much in property taxes homeowners pay -- are flat.

That's good news for homeowners who have experienced years of declining values after the housing bust a half-dozen years ago fueled by the nation's financial crisis and the bankruptcies of General Motors and Chrsyler.

It's also good news for local governments struggling to provide local services as property tax revenues declined.

Taxable values fell 24 percent from $64.7 billion to $49.2 billion during the same years.

"The line is going up, which means that property has made the turn and it's starting to come back up," says Oakland County Executive L. Brooks Patterson. "I've been telling my friends, 'If you wanted to invest at the bottom of the market, probably six months ago was that date.'

"There's still some good buys out there because property, which is increasing, is not coming up as fast as it dropped," Patterson said.

But the recovery, if it's underway, is hardly uniform. Averages are, after all, just averages.

Assessors say value increases, or decreases, vary from community to community, neighborhood to neighborhood and property to property.

Some communities continue to struggle.

Average property values in the past year dropped 14.76 percent and taxable values by 13.57 percent in Pontiac, the Oakland County seat -- hardly good news for a city struggling with its finances under a state-appointed emergency manager.

Average property values also fell in Royal Oak Township by 8.09 percent, Hazel Park by 11.98 percent, Madison heights by 6.64 percent, and Ferndale by 5.27 percent.

But average property values increased in 48 of the county's 61 communities, albeit slightly in some.

In Pontiac, state-appointed emergency manager Lou Schimmel says the decline was foreseen and planned for in the city's coming budgets and financial plans.

"We're very much aware of it so I built it into my budget the next two years," says Schimmel. "Although valuations continue to go down and it reduces the revenues, I've accounted for it."

How low can Pontiac values go?

"Who knows, but we really think we're really close to the bottom in Pontiac as well," says Schimmel. "But we know it would linger longer in Pontiac than the rest of the county. We know about it and we're hopeful it'll bottom out in the next two years."

Schimmel says businesses are planting roots or expanding in Pontiac, but the taxes haven't caught up yet.

Among them is an expansion of the GM Powertrain facility, the M1 Concourse project, the Ultimate Soccer facility, and a new tennis facility to be developed.

"It takes a little time for that to get on line and the tax dollars to come in," Schimmel said. "There are things happening in Pontiac that are hopeful."

Contact Charles Crumm at 248-745-4649, charlie.crumm@oakpress.com or follow him on Twitter @crummc and on Facebook. More information is at oaklandmichiganpolitics.blogspot.com. Keep up with the latest in local news by texting OPNews to 22700. Msg & Data Rates May Apply. Text HELP for help. Text STOP to cancel.